Insolvency Proceedings Triggered by Compliance Failures
Insolvency proceedings under India’s Insolvency and Bankruptcy Code, 2016 (IBC) are intended as swift resolutions for financial distress. Yet, many corporate debtors land in this process not from unforeseen misfortune, but from easily avoidable compliance mistakes. Understanding these common pitfalls is key to business resilience.
Delayed Resolution Timelines
The IBC mandates strict timelines for the Corporate Insolvency Resolution Process (CIRP), initially 180 days, extendable to 330 days. Systemic delays often push these periods much longer, hindering effective resolution and increasing liquidation risks. The Supreme Court has emphasized strict adherence to these…